May news …Rise in Vacancies…Drop in candidate availability.

Key Points:

  • Continued rise in permanent placements;
  • Growth of demand for staff picks up for the first time in nine months;
  • Steeper decline in candidate availability triggers greater rises in pay.

Permanent placements…

There has been an increase in permanent placements but the rate of expansion in April was the softest witnessed in 2018. The growth of placements was underpinned by a further substantial rise in demand for staff and greater job vacancies.

Decline in candidate availability…

The rate of reduction in candidate availability for permanent roles has quickened to a three-month record. The steepest decline was in the South of England.

Growth of demand for staff…

Vacancies for permanent roles have increased, thereby indicating that there is a greater demand for staff. This demand was higher in the public, as compared to the private, sector.

Pay pressures…

There has been a further rise in starting salaries for candidates placed into permanent roles. This has been linked to candidate shortages and a robust demand for staff. The strongest rise was in the South of England.

 

Commentary 

Demand for staff is still on the rise in every other sector, but candidate availability keeps dropping. Employers are paying more to attract the right people into their vacancies. For individuals, now is a good time to look for a new job, as you are in a strong position to negotiate higher pay. For employers, the challenge is to stay ahead of the competition to maintain and enhance your workforce. This is about more than just pay, it is about providing progression opportunities and a positive workplace culture. As recruitment gets harder the only solution for employers is to get better at attracting and retaining the right skills and staff…

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Inflation Remains at a Record High Amid Candidate Shortages

Key Points from the February Survey:

  • Softer rise in permanent placements
  • High levels of candidate shortages amid high starting salaries
  • Softer rise in staff vacancies

Softer rise in permanent placements…

The number of people placed in permanent jobs increased in February although at a slower rate than January’s recent high. The continued increase has  been attributed to a strong demand for staff and a greater willingness among candidates to take up new roles

Decreased demand for staff…

The demand for staff for permanent positions has risen at its slowest pace in fourteen months.

Availability of staff…

The availability of staff for permanent roles continued to decline in February.

Pay Pressure…

Salaries for permanent starters have increased further in February and the rate of inflation remains at a record high. The higher salaries have been attributed to higher candidate and skill shortages amid rising vacancies.

 

 

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Market update: Salary inflation hits 31 month record!

Key Points

  • Strong rise in recruitment
  • Starting salary inflation hits 31-month record alongside lack of candidate availability;
  • Growth of demand for candidates declines slightly but still remains high.

Sharp Increase in Permanent Placements

Permanent placements have continued to rise each month for the past year-and-a-half. This growth has been linked to a greater demand for staff, although some panellists suggest that improved decision-making has also been a factor.

Increase in vacancies:

Overall demand has continued to rise in January.

Availability of Permanent Staff:

The number of available permanent candidates has continued to deteriorate in 2018. Key permanent staff skills reported in short supply includes paraplanners.

Higher Starting Salary Inflation:

Starting salaries for successful permanent candidates has increased at the fastest pace for over two-and-a-half years.

UK Unemployment Rate in Context:

The UK employment rate is at a four-decade low of 4.3% which is below the EU jobless rate of 7.3%. The jobless rates are higher in Austria (5.4%) and the Netherlands (4.4%), but lower in the US (4.1%), Germany (3.6%) and Japan (2.7%) in comparison to the UK.

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Recruitment news Jan 2018 – Permanent recruitment continues to rise at an increasing pace

Key Points from the December Survey:

  • Permanent placements continue to rise at an increasing pace;
  • Pay inflation remains high alongside a further decrease in candidate availability;
  • Demand for staff softens but remains historically strong.

Permanent Placements

Permanent staff placements have increased at the quickest pace since August. This has resulted in a higher number of people placed in permanent job roles for the seventeenth month running in December.  Key permanent staff skills reported to be in short supply esp paraplanners but also in construction and engineering.

Staff Availability

There has been an accelerated and steep drop in permanent candidate numbers. The rate of deterioration is the fastest recorded over the past two years.

Permanent Salaries

The trend of higher starting salaries for permanent jobs has continued into December. Although the pace of inflation softened for the third month in a row, growth remained sharp overall.

Demand for Staff

Although there has been an easing in the rate of expansion of demand for staff, the rate of growth has remained sharp and above the series average.

Employment

Latest statistics reveal that 32.08 million people were in work in the three months to October. Although this was 56,000 fewer than in the prior three months, this showed an increase of 325,000 compared to the same period in 2016.

Commentary: The number of people finding jobs via recruiters is growing, even while the overall employment rate is plateauing. This suggests that more employers are turning to recruiters to help them fill vacancies as candidate availability continues to fall and recruiting good people becomes that much harder. As a response to these candidate shortages are offering increased starting salaries to attract staff but while this has been the case for some time it isn’t translating into significant wage growth across the economy yet.

Early in the New Year, people often think about changing jobs, so employers are going to have to think carefully about how they can both retain existing capabilities and find the new hires they need as competition for people intensifies. Bosses should consider going to wider talent pools and to be inventive about how to improve their employer brand and make themselves an even more attractive place to work.

 

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Job Searches: Look at the Entire Package (Not Just the Salary!)

Job Searches: Look at the Entire Package (Not Just the Salary!)

The start of a new year often coincides with a spike in job searches. In fact, more than half of the UK population will look for a new job in 2018. It can be tempting to focus solely on the offered salary. However, a wider perspective which takes into account the entire package being offered is advisable. Other factors to be considered include:

Pension Contributions

It can be important to consider whether your employer is using a defined contribution (DC) pension or a defined benefit (DB) pension scheme. The average employer for a DC scheme puts in 3.2% of salary, but this number can range from the minimum 1% to 10%. The average employer for a DB scheme, conversely, puts on 16.9%. If you seek a greater reward for your work, rather than additional cash, this can be a way of getting more money from your employer by diverting a greater amount of your salary into your pension.

Life Cover

Almost all employers offer a payment of several times your salary if you die while performing contractual duties. The majority will also pay for income protection; this will provide you with a regular income if you are unable to work for a while.

Medical Insurance

One-fifth of employees have private medical insurance. To replace this benefit, it would cost an average of just under £1,500. The benefits outweigh the payment of tax on their cover.

Save as You Earn Schemes

After paying a monthly sum into such schemes for a period of three to five years, you will be given a bonus. You can then buy shares in your employer at a fixed price. If the share price has increased during the period you can buy the shares at a large discount. If share price has fallen, you simply get your savings back with the addition of the bonus.

If you are currently involved in such schemes and decide to move employers, you will only get your savings back and no longer have the option to buy shares. Occasionally a new employer will compensate you for the forgone share options.

Other Benefits on Offer

These include:

  • Tax-free childcare vouchers;
  • Tax-efficient computer or bike schemes;
  • Season ticket loans;
  • Cheaper insurance cover;
  • Discounted shopping vouchers;
  • Free parking.

In conclusion, it is important to compare ALL the benefits offered by an existing and potential employer before deciding to accept a new job. There may be the possibility to negotiate with your current employer over the benefits offered.

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Permanent placements rise to greatest extent since August

Key Points from the November Survey:

  • Permanent placements rise at a quicker pace;
  • Availability of candidates continues to decline sharply;
  • High demand for staff leads to further increases in pay;
  • The unemployment rate remains low.

Staff Appointments Rise Further…

The growth in permanent placements has reached a three-month high across the UK. The rise has been attributed to an increased demand for staff and company expansion plans.

The number of permanent placements in the South, conversely, is increasing at a slower rate.

Vacancies…

Staff vacancies have continued to rise sharply. The rate of growth since October, however, has slackened slightly.

Across all sectors, the number of permanent staff vacancies has increased. In descending order, the sectors with the greatest number are:

  • Accounting/Finance;
  • IT and Computing;
  • Engineering;
  • Executive/Professional.

Staff Availability…

Across the UK the availability of candidates to fill permanent roles has continued to decline. The South has recorded the steepest decline in permanent labour supply. The key permanents staff skills reported to be in short supply include:

  • Accounting/Finance:
    • Audit, Estimators, Insurance, Paraplanners, Payroll.
  • Blue Collar:
    • HGV and LGV Drivers, Production and Distribution.
  • Construction:
    • Construction, conveyancing, Quantity Surveyors.
  • Engineering:
    • Aerospace, Engineers, Technicians.

Pay Pressures…

The average starting salaries for permanents jobs has continued to increase, resulting in a growth which has lasted for just over five-and-a-half years. The increase is salary has been attributed to low candidate availability combined with a strong demand for staff. The quickest rate of inflation has been recorded in the North.

Unemployment…

The unemployment rate and claimant count for the UK remains historically low.

The unemployment rate stands at the lowest level it has been since 1975. It is virtually identical for both men and women.

In October, approximately 806,000 people claimed out-of-work benefits. Although a rise by around 24,000 people compared to last year, the claimant count has remained close to its lowest level recorded in the early 1970s.

 

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Decline in Availability of Candidates and Increased Starting Salaries!

Key points from the October survey:

  • Continued growth of appointments but at a softer pace
  • Availability falls sharply
  • Starting salaries increase at second-quickest rate since November 2015!

Commentary “Its great news that employers are continuing to hire. However, that growth is slowing down and one of the reasons is that we simply do not have enough people for all the roles that are out there at the moment. And the number of vacancies is still getting higher. For jobseekers this is good news as employers are willing to pay higher starting wages to attract the right candidates. 

EU workers are leaving because of the uncertainties they are facing right now so the situation may well get worse and employers will face even more staff shortages.”

Appointments/Vacancies…

A strong underlying demand for permanent workers has created the continued growth in recruitment. However, shortage of suitable candidates and concerns over
the UK economic outlook has been detrimental to the overall pace of expansion.

This trend occurred throughout all of England; however permanent job vacancies in the South of England continued to increase at a faster rate than the national average.

Increased Demand in Workers Juxtaposed with Declined Availability of Workers…

Since October 2016 to October 2017 there has been an increased demand in workers across all sectors, in particular:

  • Accounting/Financial – increase of 9.1%
  • IT & Computing – increase of 4.1%
  • Engineering – increase of 3.3%

The problem is compounded by the lack of availability of workers throughout the UK. The sharpest drop in permanent candidate availability continued to be seen in the South of England.

Pay Pressures…

Starting salaries for people placed in permanent jobs has increased further.

The rate of pay inflation has also quickened throughout the UK and was the second-strongest recorded since November 2015. The steepest increase in rate of pay inflation was in the South of England.

Earnings and Inflation…

Average weekly earnings have continued to increase but at a slower pace than living costs. Higher fuel and food costs have been key culprits in the inflation. Combined with the concerns that real pay will continue to decline, there will be further pressure exerted on household budgets and spending.

 

 

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Declined pace in permanent placements, candidate shortages and higher salaries

October Report on Jobs

Key Points from the September Survey

  • Permanent placements rise at weakest pace for five months
  • Candidate shortages continue to drive up pay rates


1. Staff Appointments

Growth in permanent staff appointments eases

The number of people placed into permanent job roles continued to increase in September, stretching the current sequence of growth to 14 months. Though solid, the rate of expansion was the slowest recorded since April. Evidence indicated that strong demand for permanent staff across both new and existing clients supported the latest upturn. However, there were some reports that a lack of suitably skilled candidates had weighed on overall growth.

On a regional basis, growth of permanent placements was the most marked in the Midlands and the South of England.

2. Vacancies

Vacancies continue to rise sharply

There has been a further sharp increase in demand for staff. Steep growth of demand was signalled for permanent staff during September.

Other vacancy indicators

Data from the Office for National Statistics (ONS) indicated that job vacancies rose by 3.2% year-on-year in the three months to August. This was down only slightly from a 3.5% increase in the preceding three months.

3. Staff Availability

Availability of permanent staff

The availability of permanent candidates continued to fall sharply in September. Notably, the rate of reduction was the most marked for four months.

The South of England continued to record the steepest drop in permanent candidate numbers, though all remaining UK regions also saw sharp rates of contraction.

4. Pay Pressures

Permanent Salaries

Although the rate of salary growth softened since August, it remained sharp overall. Evidence indicated that a shortage of suitable candidates had placed upward pressure on pay.

The South of England saw the steepest increase in permanent starting salaries of all monitored UK regions, followed by Scotland.

5. Vacancies – Feature

Latest labour market data published by the Office for National Statistics (ONS) indicated that there were 774,000 job vacancies for June to August 2017. This represented an increase of 24,000 compared to the same time last year.

The official numbers back up the strong increases in staff demand. Notably, the ONS data indicated that the number of job vacancies in 2017 have exceeded any level since the series began in 2001. Vacancies broken down by sector revealed that the vast majority of unfulfilled roles (687,000) were in the services sector.

 

Simon Bean, Managing Director of Recruitment Connection says:

“The above trends highlight that it is becoming increasing difficult to fill vacancies for permanent roles. The shortage of suitable candidates has in turn triggered increased pressure on salaries.”

“The struggle to recruit for permanent places, particularly in the financial sector, resonates throughout the UK; London, however, has been hit the hardest and placements have declined for the first time in eleven months.”

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Legal Changes on the Horizon in 2016

The recruitment industry is, according to the REC, in rude health!

It predicts that in 2016 more than 90% of employers will increase headcount.  However, one of the significant external influences that is going to hit the sector this year is the National Living Wage.

national-living-wage

From April 2016 individuals aged 25 and over will be entitled to receive the National Living Wage of £7.20 per hour, increasing to above £9 per hour by 2020.  Overall this is expected to cost employers £804m-£672m in wages and £132m in associated non-wage costs, such as NICs.  There is also likely to be a ripple effect as businesses try and maintain pay differentials, estimated to cost employers £59.5m.

The cost to end-clients, allowing for holiday pay and pensions, means either that recruiters will need to increase their pricing to preserve their margin or their margin will be reduced.

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November Job Market Report

Report on Jobs – November

Key points from the October survey:

  • Growth of both permanent placements and temp billings accelerates
  • Salaries continue to rise strongly
  • Candidate availability remains tight

Faster growth of permanent and temporary appointments…

October data signalled a further increase in permanent staff placements. Growth was solid and the sharpest in four months. Around 41% of panellists reported higher placements, citing robust demand for staff. Temporary/contract staff billings also rose at a faster pace, with the rate of expansion at a three-month high.

…underpinned by robust demand for staff

Vacancies continued to rise at a marked pace in October. Growth of demand for permanent employees remained sharper than that for temporary/contract staff. Growth also remained considerably stronger for the private sector rather than the public. Accounting/Financial remained the most sought-after category for permanent staff in October.

Strong salary growth maintained…

Permanent staff salary growth remained strong in October, and was similar to the rates seen during the third quarter. Temporary/contract staff hourly pay increased at a solid pace, albeit slower than that seen for permanent salaries.

Data from the Office for National Statistics indicated that annual growth of employee earnings (including bonuses) quickened to 3.0% in the three months to August, from 2.9% in the three months to July. Earnings growth rose to 3.4% in the private sector, remaining well above that in the public sector (1.1%).

Data from the Office for National Statistics signalled that average weekly earnings across the UK rose 2.5% year on-year to £580 in the second quarter of 2015. The East Midlands posted the strongest annual rise, up 11.3% to £547. The sharpest fall was seen in the South West, where average weekly earnings were down -1.9% on the previous year to £550.

…as candidate availability continues to fall

The availability of staff to fill permanent job roles fell further in October. Although easing to the slowest since January, the rate of decline remained sharp. Temporary/contract staff availability also decreased markedly, and at a slightly faster pace than in September. Around 36% of panellists reported lower permanent staff availability, three times the proportion that noted a rise. Permanent candidate availability fell in each of the four monitored regions, with the sharpest drop signalled in the Midlands.

Feature: Unemployment

Latest data from the Office for National Statistics showed that the UK unemployment rate dropped to a seven-year low of 5.4% in the three months to August.

There were 1.77 million people out of work in the latest period, down 79,000 from the previous quarter. The decline in unemployment more than reversed the increases seen in each of the previous three survey periods.

Employment rose to 22.77 million, up 140,000 on the quarter. Compared with one year previously, the total was 359,000 higher, of which 291,000 were full-time jobs. At 73.6%, the employment rate was at a record high

.UK unemployment Oct Job market report

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